Polish Development Fund invests in NATO Innovation Fund
Polish Development Fund (PFR) invests in NATO Innovation Fund, a multi-sovereign EUR 1 billion deep tech venture capital fund that will invest in startups developing technologies with dual-use potential (civilian and military). The investors are the allied nations. The investment on behalf of Poland will be made by the Polish Development Fund through PFR Ventures and in cooperation with The Chancellery of the Prime Minister and the Ministry of National Defence.
The NATO Innovation Fund (NIF) engages 23 NATO Allies, which have become its investors. A specialized, external investment team will be responsible for searching for projects that develop modern technologies with dual-use potential: civilian and military. The main investment areas of the fund include, among others: artificial intelligence (AI), quantum computing, space industry, and biotechnology.
Poland is one of the fund’s investors, allocating its capital through PFR Ventures, a specialized investment arm of Polish Development Fund, according to the strategy agreed with The Chancellery of the Prime Minister and the Ministry of National Defence. PFR Ventures has already invested in nearly 70 venture capital and private equity funds.
The NATO Innovation Fund will invest EUR 1 billion, and Poland’s contribution is nearly 5%. The level of capital allocation of individual countries depended on many economic factors, including GDP.
The war in Ukraine highlights the need for the development of modern technologies that can be used by the military. It's not just about purely military technologies, but also innovations in areas such as reconnaissance or communication. These are areas that are often developed on the civilian market and can be beneficially implemented in the military as well. I hope that the NATO fund will invest in Polish innovative projects, with the help of Warsaw bureau
says Mr. Paweł Borys, President of the Polish Development Fund.
We have years of experience in allocating funds to venture capital and private equity funds. We have built a competence center in this area and are happy to use it to ensure Poland has appropriate exposure in the fund
adds Mr. Aleksander Mokrzycki, Vice President of PFR Ventures and a member of the advisory committee of the Secretary General of NATO for new technologies.
PFR and PFR Ventures recently signed cooperation agreements with Poland’s Ministry of National Defense. The institutions are to cooperate, among other things, in accelerating emerging Polish technologies and educating entrepreneurs about opportunities related to NATO projects: the DIANA accelerator and NATO Innovation Fund.
Experiences from the unprovoked Russian aggression against Ukraine unequivocally indicate that effective defense requires the use of advanced technologies. The key to success in this area is the appropriate pace of implementation of modern solutions in military systems. This is possible, among other things, by adapting solutions from the civilian market. As the Ministry of National Defense, we want to systematically support innovators from the science and industry sectors. Participation in new NATO initiatives is the way to achieve this
says Mr. Marcin Ociepa, the Secretary of State in the Ministry of National Defense,
Active involvement of the Ministry of National Defense in tools such as DIANA accelerator and NATO Innovation Fund makes Poland join the family of countries creating a modern defense innovation ecosystem that supports the development of national and allied operational capabilities
– emphasizes Brigadier General Mr. Marcin Górka, Director of the Innovation Department at the Ministry of National Defense.
The NATO Innovation Fund will be managed by a group of specialists who have conducted numerous transactions in the advanced technology sector. They will be looking for investment projects across all of Europe. The fund’s strategy addresses the needs and the challenges faced by every participating NATO Ally. Offices will be located in Amsterdam, London, and Warsaw.